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Model Test Papers M.11

5. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
X’s Loan A/c ...Dr. 1,10,000
To X’s Capital A/c 10,000
To Cash/Bank A/c 1,00,000
(Being X’s Loan adjusted against debit balance of his Capital A/c
and the balance paid)

6. `
Average Expected Net Profit 3,60,000
Less: Partners’ Remuneration 60,000
3,00,000
Less: Normal Profit (10% of ` 20,00,000) 2,00,000
Super Profit 1,00,000
Goodwill = Super Profit × No. of Years’ Purchase = ` 1,00,000 × 2 = ` 2,00,000.
7. AN EXTRACT OF BALANCE SHEET as at 31st March, 2018

Liabilities ` Assets `
Capital Fund Building in Progress 3,60,000
Opening Balance 10,80,000 10% Building Fund Investments 4,80,000
Add: Transfer from Building Fund 3,60,000 14,40,000
Building Fund
Opening Balance 4,80,000
Add: Donation Received 6,00,000
Interest on Building Fund
Investments 48,000
11,28,000
Less: Transfer to Capital Fund 3,60,000 7,68,000

8. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 1,12,000
To A’s Capital A/c 53,500
To C’s Capital A/c 58,500
(Being the required cash brought in by A and C)
B’s Capital A/c ...Dr. 1,98,000
To Bank A/c 1,98,000
(Being the payment made to B)
Working Notes:
1. Calculation of Gaining Ratio: Gain of a Partner = New Share – Old Share
A gains = 5/8 – 4/9 = 13/72; C gains = 3/8 – 2/9 = 11/72. Gaining Ratio = 13 : 11.
2. Adjusted Old Capitals: A (`) B (`) C (`)
Capitals Before Adjustments 2,19,500 1,14,000 1,16,500
Share of Goodwill (39,000) 72,000 (33,000)
Share of Loss on Revaluation (12,000) (9,000) (6,000)
Share of General Reserve 28,000 21,000 14,000
Adjusted Capitals 1,96,500 1,98,000 91,500